Inflation at the Fed have receded, economic data worsened, officials look out for ways to "spur economic growth and improve financial conditions."
Shift central bank of gov't bonds so that it holds more long-term securities and fewer short-term securities.
"Operation Twist" aka "Maturity Extension" = furhter push down long-term interest rates and this encourage economic activity.
Trying to "twist" interest rates
Since International Business affects the economy of the whole world, what has the decline of the American economy contributed to the world? The U.S. is one of the leading countries of the world.
This event makes me think of my AP History class. In class we were talking about the political machine and how the Bosses were taking over the economic system because of their power and wealth. The Bosses were taking advantage of the banks and votes to gain. I feel that the U.S. is now also trying to depend on the interest rates to create a better economy.
Summary:
The economy has been declining and the federal government has to intervene to try to assist the economy to grow and to improve its financial conditions. There are shifts of the banks to help make changes that would promote short term and long term securities and improvement. This method of change is also known as the "Operation Twist" because of the twists and changes that it is making to the economic system. International business affects the whole world so the decline of one country can affect the economy of the world or individual countries depending on one another. Week 2:
U.S. Ambassador to China, Gary Locke is urging Beijing to reduce barriers to foreign companies doing business there.
Business are growing fustration with the pace of the Chinese economic reform.
Biggest barrier to greater U.S.-China economic cooperation is a lack of openness in many areas of the Chinese government.
Chinese government has what Locke called counterproductive policies.
Foreign businesses face substancial restrictions in participating in a variety of Chinese industries.
China owns more than $1 trillion worth of U.S. debt.
Locke says it himself that it is the U.S.-China economic cooperation so it means that both the U.S. and China are at fault. Instead of stating the fault as from both countries, Locke only says that China is to blame. I don't think this is fair. They formed an alliance then they should be assisting each other and succeed.
Summary:
People are saying that China is preventing full potential trade because of their restrictions. China has made many advancements that allowed the nation to grow economically. The Chinese government is creating policies that are preventing other countries to fully interact and do business with China. As the economy is growing, China creates barriers that prevent collaboration with the United States. China is one of the strongest industrialized countries of the world and it holds about $1 trillion worth of the U.S. debt.
"Provide Taiwan with arms of a defensive character" to guard against the hostile mainland.
Obama agreed to refurbish Taiwan's F-16 fighter jets but Chinese objections made the deal less advantageous than it could've been.
Fear that one day Taiwan will make a formal declaration of independence. U.S. is at risked at being dragged into conflict, possible nuclear war.
Abandon Taiwan = bringing out the worse of China
America continues to support Taiwan.
Why is it so wrong for Taiwan to become its own country. Taiwan has been technically functioning as its own country but mainland China feels that it needs to rule over Taiwan. I don't think it will make a huge problem if Taiwan wanted to become its own country.
Summary:
Taiwan is a colony of China and it has always been under the control of China. The United States has been supplying Taiwan with military machinery. Although Taiwan wants to become independent, the United States does not want to get involved because of the fear of possible outbreaks that may rise between the two nations. By abandoning Taiwan, the U.S. would be bringing out the worse of China. The rage between the nations can possibly lead to a nuclear war therefore the U.S. chose to continue to support Taiwan.
More than 1 million Italika motorbikes were sold in Mexico. (highly pricey, company takes over 2/3 of Mexico's bike market)
"Italika is part of the empire of Ricardo Salinas, Mexico’s fourth-richest man, whose interests include shops, banking and television."
assembled from Chinese parts in a factory near Mexico City
I know that in Vietnam, motorbikes are used as the main method of transportation. I didn't expect Mexico to spread the motorbike industry so rapidly. I didn't know that people used motorbikes in general.
They are still depending on China made part to produce the vehicles. Even though they are a big corporation, Italika uses the cheap labor rates from China to fulfill a motorbike to sell for a high profit. It is unfair to the cheap labor workers.
Summary:
One of the most known and pricey products of Mexico is the Italika motorbikes. This motorbike market is growing rapidly in Mexico but already approximately 2/3 of the market ix controlled by the Italika corporation. Their goal is to continue to expand beyond their borders to make the product more well known. They build the piece of machinery from the already made Chinese part in a factory near Mexico City. The company itself is still growing but I think that it is taking advantage of the cheap labor of China to make a high profit because of the high prices it has set its products at.
borrowing more to keep up on its existing debts, crushing growth in the process and worsening its all-important ratio of debt-to-gross domestic product.
tax revenues shrinking as the economy shrivels, debt is likely to rise to 173 percent of GDP in 2012 from 162 percent this year
Athens has little chance of battling back to growth
"Germany is a prolific saver and Greece is a prolific borrower"
If the Germans weren't willing to lend so much then Greece wouldn't have anyone to borrow from. This would make them find their own way to sustain. Since the Germans are willing to led the money, Greece is reluctant and depending on the Germans to help them retain their economy.
Summary:
Greece is in trouble. Actually, Greece is in debt, so much that the economy of Greece cannot sustain without the aid of loans and help from other countries. Greece is borrowing more and more money to try to keep up with its debt but this is stopping its economy from progressing. While the debts of Greece are rising, the Germans keep loaning, making it difficult for Greece to deny the money offered. Athens has a little chance of battling back to the growth of Greece because of all the damage that was done. It is projected that the debts of Greece will continue to grow and its economy would continue to decline and make no possible comebacks. Week 6:
capivaris—a local currency emblazoned with the face of a giant rodent
capybara, a pig-sized rodent common in a local river
Joaquim Melo, a former seminarian who worked as a social activist there in the 1990s
currency as a logical alternative to an experiment with neighborhood credit cards
"If the money outlasts me, people will think I was ugly."
Benta Neves do Nascimento
I cannot imagine a pig sized rodent. That just seems terrifying to me. I couldn't even stand looking at a tiny mouse let alone a huge rat. I think that if there was a battle between me and the capybara, I would be the one to lose.
I think the comment that Ms. Nascimento is very entertaining and it brings up a good questions. Does the money we use reflect who we are as a person? The image on money can mean different things to people, what if it is ugly? Does this mean that we are ugly too?
Summary:
There was a controversial conflict between the use of local currency and the national currency that Brazil uses. The image of the capivaris, which is the local currency is based on the capybara, which is a pig-sized rodent. This currency has the ugly image but it is said by the people that it is the currency that saves money. At first people did not want to use the currency due to its appearance and they feared that it was going against the national currency. The government finally allowed the existent of the local money and many of the purchases today are paid for using either the local or national currency.
Week 1:
The Fed Prepares to Act
Summary:
The economy has been declining and the federal government has to intervene to try to assist the economy to grow and to improve its financial conditions. There are shifts of the banks to help make changes that would promote short term and long term securities and improvement. This method of change is also known as the "Operation Twist" because of the twists and changes that it is making to the economic system. International business affects the whole world so the decline of one country can affect the economy of the world or individual countries depending on one another.
Week 2:
U.S. Urges China to Lower Trade Barriers
Summary:
People are saying that China is preventing full potential trade because of their restrictions. China has made many advancements that allowed the nation to grow economically. The Chinese government is creating policies that are preventing other countries to fully interact and do business with China. As the economy is growing, China creates barriers that prevent collaboration with the United States. China is one of the strongest industrialized countries of the world and it holds about $1 trillion worth of the U.S. debt.
Week 3:
Abandon Taiwan to Chinese Dominance
Taiwan is a colony of China and it has always been under the control of China. The United States has been supplying Taiwan with military machinery. Although Taiwan wants to become independent, the United States does not want to get involved because of the fear of possible outbreaks that may rise between the two nations. By abandoning Taiwan, the U.S. would be bringing out the worse of China. The rage between the nations can possibly lead to a nuclear war therefore the U.S. chose to continue to support Taiwan.
Week 4:
Buzzing into Brazil...
One of the most known and pricey products of Mexico is the Italika motorbikes. This motorbike market is growing rapidly in Mexico but already approximately 2/3 of the market ix controlled by the Italika corporation. Their goal is to continue to expand beyond their borders to make the product more well known. They build the piece of machinery from the already made Chinese part in a factory near Mexico City. The company itself is still growing but I think that it is taking advantage of the cheap labor of China to make a high profit because of the high prices it has set its products at.
Week 5:
'Greece' Lightning or 'Greece' Fire
Summary:
Greece is in trouble. Actually, Greece is in debt, so much that the economy of Greece cannot sustain without the aid of loans and help from other countries. Greece is borrowing more and more money to try to keep up with its debt but this is stopping its economy from progressing. While the debts of Greece are rising, the Germans keep loaning, making it difficult for Greece to deny the money offered. Athens has a little chance of battling back to the growth of Greece because of all the damage that was done. It is projected that the debts of Greece will continue to grow and its economy would continue to decline and make no possible comebacks.
Week 6:
Really!? Currency is not such a "Real" Deal in Brazil?
Benta Neves do Nascimento
There was a controversial conflict between the use of local currency and the national currency that Brazil uses. The image of the capivaris, which is the local currency is based on the capybara, which is a pig-sized rodent. This currency has the ugly image but it is said by the people that it is the currency that saves money. At first people did not want to use the currency due to its appearance and they feared that it was going against the national currency. The government finally allowed the existent of the local money and many of the purchases today are paid for using either the local or national currency.